is your cs licensed / video monitoring and guard response August 18, 2018

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
You can read all of our articles on our website.  Having trouble getting our emails?   Change your spam controls and white list ken@kirschenbaumesq.com 
************************************
is your cs licensed / video monitoring and guard response
August 18, 2018
********************
is your cs licensed
********************
Ken
    A former out-of-state CS we used here in Maryland sold its business to a crosstown CS.
    The president of the new CS and his staff repeatedly said they had all the needed licenses required in MD. However, none would give me the actual  state and local registration numbers, which are required to dispatch authorities to our clients homes and businesses.
    After clients started received letters staying their local police dept would no longer respond to dispatched from our CS, investigation revealed the new CS was not licensed by MD or any of its subdivisions, and was not even registered to conduct business within the State of MD. (Actually, I couldn't even find a registration for this national CS within its home state.)
    The obvious caution here is that dealers should not simply assume a CS is licensed and registered in their jurisdictions.  Beyond that, what are the ramifications and liabilities of such CS behavior, and what recourse may be available to dealers?
Please withhold my name
***********************
Response
***********************
    Approximately 20 states and bunch of municipalities include alarm monitoring in the alarm license requirements.  That means you can't perform alarm monitoring in that state or locale unless you have the required alarm license.  While some interpret alarm license requirements in different ways, suffice it to say that the better view is that if the alarm originates in the jurisdiction then whoever is monitoring it needs to have the license required in that jurisdiction.  It's not enough that the monitoring center has a license in the jurisdiction where it is located.  It's good argument, and also probably the way it should be, but jurisdictions that require a license tend to enforce the requirement, occasionally.  
    One of the more potent ways a jurisdiction deals with a non-licensed central station is to refuse to accept calls from that central station.  Ultimately the consumer-end-user is notified that First Responder response is not going to happen.  The end user then complains to the dealer.  Fines are assessed.  I should add that using a non-licensed central station will not, per se, make you liable if your subscriber suffers a loss that is attributable to the monitoring services.  It certainly won't help, but the complainant will still have to establish that the non-licensed central station departed from customary practice and was otherwise negligent.
    Another related issue.  If you are considering doing business in a particular jurisdiction that requires a license then you need to have the license.  You cannot piggy-back on your central station's license.  If you are entering into a Monitoring Contract with the subscriber and then subcontracting the monitoring to a wholesale central station, then YOU are in the monitoring business and YOU need your own license.  If you don't want to enter into monitoring contracts, or IF YOU USE THE MONITORING CONTRACT PROVIDED BY YOUR CENTRAL STATION, then you are foolish, and I am being kind.
    If you want to make a buck offering monitoring services [and if you don't than why are you in this business] then you have to use your own monitoring contract.  Monitoring is part of the All in One Agreement.  Use it.
***********************
video monitoring and guard response
***********************
    My customer, a Guard Company, is looking to sell remote video monitoring services to security integrators for them to resell to the subscribers. For example, Alarm Company A will sign a contract with their customer to monitor their video cameras remotely. They will then sign a contract with the Guard Company to have their security guards to monitor the video and respond to incidents according to a predetermined plan (call the police, call building management, etc). 
    What contract(s) should the Guard Company use and what contract should the dealers be using?
Thank you, 
Ari
*************************
Response
*************************
    The Guard Company is essentially performing central station and guard response services.  The Guard Company needs to have a Dealer Agreement with the dealers.  It also needs a direct contract with the subscribers and can use the Three Party Agreement; these are the same contracts every central station needs.  
    In lieu of the Three Party Contract the Guard Company [and every central station] can insist that the dealer use a Commercial All in One Agreement, or if residential, a Residential All in One Agreement.  These agreements will provide the best contractual protection available and add the most value to each contracted account.  Get the contracts at www.alarmcontracts.com
******************
Note: I just want to remind you that if you are getting duplicate emails from me daily because I am using two bulk email service companies. The two companies seem to reach different addresses. Feel free to delete one email. If you want to unsubscribe you should do it from both emails. You can always read our emails on our website at www.kirschenbaumesq.com/page/alarm-articles
*******************

THE ALARM EXCHANGE

This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. Those wishing to sell or buy; borrow or lend; dealer program or dealer; central stations; insurance brokers; business  brokers, insurance companies. Equipment to sell; looking for employees; subcontractors; mergers;

Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com